Norway. Agder Energi AS

Date of agreement:10 Sep 2013
Customer:Agder Energi AS
Amount in NOK:NOK 458 million
Amount in EUR:EUR 58.3 million
Maturity:15 years
NACE sector / loan type:Electricity, gas, steam and hot water supply

This loan contributes to climate change mitigation: 100%

Financing from NIB Environmental Bond proceeds

NEB-eligible share: 100%

NEB category: Renewable energy generation

Amount disbursed: EUR 58.1 million

Note: For loans in other currencies than EUR, the equivalent in EUR is based on the exchange rate effective for the disbursement. Read more about the NIB Environmental Bonds


The loan will be used to construct the new Iveland II hydropower plant next to the existing Iveland plant utilising the river Otra of Kristiansand. Agder Energi will also replace the turbine wheel and renovate the generator at the Rygene power station in the Nidelva river south of Arendal.

Construction of Iveland II started in June 2013 and is expected to become operational in the second quarter of 2016. The new plant is expected to increase Agder Energi’s annual production by 150 GWh. The Iveland II unit will be constructed beside the existing Iveland hydropower plant.

The new plant will comprise a new water intake with control gate, a 1.9 km long new intake tunnel for water and a 44 MW Francis turbine, a new outlet channel, generator, transformer station and power lines connecting to the existing grid.

The upgrade of the Rygene power plant will raise efficiency in energy conversion by 5%, or cirka 14 GWh, to a total of approximately 295 GWh. Works are scheduled to start in the autumn of 2013 and commissioning is planned for autumn 2015.

The Rygene power station is situated in the most downstream part in the Nidelva river. The plant has been in operation since 1978. The project comprises the replacement of a turbine wheel, control and emergency systems, transformers and renovation of the generator.

Agder Energi AS is majority-owned by local municipalities and is Norway’s fourth largest hydroelectric producer. The company’s operations include the production, distribution, and sale of hydropower and energy-related services.

Fulfilment of NIB's mandate

Hydropower is the most efficient electricity production technology, due to its low operational costs and its energy storage function, which allow for quick supply responses to price signals.

Investments that increase the utilisation of hydro reserves in the Nordpool region contribute to securing supply and maintaining efficient operations in the Nordic and Baltic region.

The company has an important role in maintaining the stability of the regional network since it provides roughly 22 per cent of total production in the NO2 price area of Nordpool.

Sustainability summary


Increasing hydropower generation in an already regulated watercourse is an environmentally efficient way of generating electricity.

A positive effect of the Rygene project is that the oil lubricating system for the turbine boss will be replaced with a water based system. This will reduce the risk of future oil leakages.


Press release

NIB Environmental Bond to finance a hydropower project in Norway

Press release

NIB finances new hydropower capacity in Norway